Chevron South Africa, which operates in South Africa under the Caltex Brand, has announced the appointment of Shashi Rabbipal as its new Executive Chairman.
Shashi Rabbipal will be responsible for leading Chevron South Africa’s corporate governance team and will steer the company’s continued progress on Transformation. He will also focus on establishing and maintaining relationships with key external stakeholder business partners.
Shashi Rabbipal joined Chevron 25 years ago and has fulfilled various general management roles at Chevron South Africa in Sales and Marketing for Europe, Africa, Middle East and Pakistan and also worked for a time in the United Kingdom with Chevron. He served on the board of Chevron South Africa and a Chevron Joint Venture in Romania.As a result, he has accumulated extensive experience and knowledge within the industry.
Commenting on his appointment, Rabbipal said that he sees an opportunity for the company to work closely with various stakeholders towards key strategic priorities, particularly on Transformation in the petroleum sector and on fuel security.
“A mutually beneficial and strategic partnership with key stakeholders is important to Chevron South Africa in delivering competitive results the right way. We recognise that the country needs a reliable and strong refining industry to ensure security of supply and be an enabler of economic Transformation in the country. ”
Rabbipal adds, “I believe that our Transformation agenda already reflects our commitment to government’s imperative on socio-economic Transformation and more specifically, the creation of black industrialists.”
To this end, Chevron South Africa has challenged the traditional ownership models for its retail business by placing over 50% of its retail network in the hands of Caltex Branded Marketer entrepreneurs who in turn are also obliged to fulfil socio-economic transformation.
In preferential procurement, Chevron South Africa is procuring a significant volume of its crude oil and petroleum products through black empowered traders. In non-hydrocarbon procurement, Chevron South Africa spends around R5 billion annually with local suppliers of which 100% of spend is with B-BBEE compliant companies of which 66% is with black women owned businesses.
When it comes to ownership and employment equity, a consortium of Black Economic Empowerment shareholders and an employee trust hold 25% of Chevron South Africa (Pty) Limited. At the Board level, four of the seven executive director seats are designated for black directors, of which half must be black women. Whilst 80% of its employees are black, Chevron South Africa has further recruited an additional 31 unemployed learners living with disabilities that will undergo skills development programs that will assist in their absorption into the Industry.
“In addition to employing over 500 permanent staff, the Chevron Cape Town Refinery sustains over an additional 13000 employment opportunities at first tier suppliers alone. This stimulates economic activity throughout the entire petroleum industry value chain into the economy of South Africa,” concludes Rabbipal.
Chevron’s Lubricants Manufacturing plant located in Island View in Durban together with its co-located premium lubricants base oil hub further supports Project Phakisa. Strategically located at the Port in Durban, it plays a key role in supplying and distributing lubricants and other greases for the local and international markets. It also has high spin-off effects on industrial production and job creation in South Africa. It contributed R308 million to the country’s GDP and generated R115 million in tax revenue annually. In addition to this, it supported 609 jobs and created R96 million in household income via the broader economy-wide impact of Chevron LMP operations.
Chevron South Africa has further committed 3% of its net profit after tax in Enterprise and Supplier Development in Exempt Micro Enterprises and Qualifying Small Enterprises. At additional 1% of its net profit after tax has been committed to Socio-Economic Development in Education, Economic Development and Health, programmes.
“We have embedded Transformation as a key driver in our business and as a result we have sustained Level 2 B-BBEE qualification for two consecutive years across our entire business including the Refinery. These factors demonstrate our intention to lead change in the petroleum sector, not as a short-term project, but as a continual, deeply rooted process. It is further testament of our commitment to partner with government on its other strategic initiatives,” he adds.
Commenting on the importance of the company to the economy, he added that, “Chevron South Africa's operations have high spin-off effects on employment and labour income in South Africa. For every employment opportunity offered by Chevron South Africa and its first-tier suppliers, three additional jobs are sustained in the country. In all, over 100 000 jobs or about 1% of total employment in South Africa can be directly or indirectly traced back to the combined force of Chevron South Africa, its suppliers and its network of Caltex service stations.
Additionally, Chevron South Africa’s tax contributions amount to R19 billion annually, which is an important contribution to the country.”
Rabbipal is proud to be part of a winning team that has a strong and unwavering commitment to be the global energy company most admired for its people, partnership and performance.